Legislature(2001 - 2002)
03/28/2001 01:58 PM Senate HES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SJR 21-URGE EXTENSION OF FEDERAL TANF GRANTS
MR. JIM NORDLUND, Director of the Division of Public Assistance,
Department of Health and Social Services (DHSS), stated support
for SJR 21. This resolution supports continuation of supplemental
grants through the state's Temporary Assistance for Needy
Families (TANF) program, established with the creation of the
federal welfare reform law that passed in 1996. That law replaced
open-ended entitlements to states for the AFDC program with a
block grant program for states. The amount of the block grant
was based on the amount of money each state had received for
their AFDC programs in FY 1994, amounting to $63.6 million for
Alaska. The federal law also provided that relatively poor and
rapidly growing states would receive a 2.5 percent annual
increase to their block grants amounts. Alaska is considered to
be a high growth state.
MR. NORDLUND explained that states received the supplemental
increases for four years. Alaska's first block grant in 1998
amounted to $68 million; that amount has increased to $70 million
but it will decrease to $63 million in October, the start of the
federal fiscal year [FY 02]. DHSS obligated $70 million and more
for cash assistance, child care and other programs and now faces
a $15 million deficit. Calculated into that deficit is the $6.9
million that will be lost from federal sources. SJR 21 requests
Congress to continue the supplemental amount at the current
year's level for at least one more year. He informed committee
members that this approach has received a great deal of support
from the National Governors' Association, the National Council of
State Legislatures, and other organizations.
CHAIRWOMAN GREEN asked if other state legislatures have passed
similar resolutions.
MR. NORDLUND nodded affirmatively.
CHAIRWOMAN GREEN asked if a copy of the resolution should also be
sent to President Bush.
MR. NORDLUND said he believes the omission of the President as a
recipient was an oversight.
CHAIRWOMAN GREEN offered to accept a conceptual amendment to add
the President of the United States and the U.S. Secretary of
Health and Human Services to the list of recipients [Amendment
1].
SENATOR LEMAN so moved and, with no objection, the motion
carried.
CHAIRWOMAN GREEN asked if anyone expected to use the TANF funds
when welfare reform was initiated.
MR. NORDLUND said he does not believe any of the states expected
welfare reform to be as successful as it has been. Caseloads have
dropped by over 50 percent. In the initial years, the block grant
balances built up and DHSS was advised by members of Congress
that the state should spend those funds. Caseloads had dropped so
quickly that the states had not had sufficient time to gear up
and use the funds to build up programs. Alaska has built up its
programs and is now dependent on that money. He noted SJR 21
asks for a one-year extension but the whole TANF program is up
for reauthorization by Congress.
Number 1431
CHAIRWOMAN GREEN asked if the Legislature will know anything by
next session.
MR. NORDLUND said it should because the law has to be
reauthorized by October.
CHAIRWOMAN GREEN said she questions whether the state is doing
things it shouldn't be with this money. She said sometimes good
things happen when people are forced to find new ways to run
programs.
MR. NORDLUND said the TANF program is in the process of being
audited and it is possible the audit will determine that a
program, similar to the Head Start program, should not be funded
with TANF money. He suggested amending SJR 21 by removing "the
Head Start Program," on page 2, line 12, and changing $6,900,000
to $6,887,800 on page 1 line 15 [Amendment 2}. He explained that
$6,887,800 is the exact number, while $6,900,000 was an estimate.
SENATOR DAVIS moved to adopt Amendment 2.
There being no objection, CHAIRWOMAN GREEN announced that
Amendment 2 was adopted.
SENATOR LEMAN moved CSSJR 21(HES) from committee with individual
recommendations and its zero fiscal note. There being no
objection, the motion carried.
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